CKB stablecoin payment is a decentralized stablecoin payment solution based on the CKB network, combining CKB with the Bitcoin network to generate and manage the RUSD stablecoin pegged to the US dollar through Layer 2 extensions like RGB++ and Fiber Network, enabling fast, low-cost, and secure cross-chain payments.
$CKB is the Layer 1 blockchain of Nervos Network, mainly providing consensus and execution, data availability, and other functions. By building payment channels and Layer 2 expansions like RGB++ on top of it, CKB enhances scalability. It uses a PoW consensus mechanism similar to Bitcoin and optimizes BTC’s consensus algorithm NC-MAX for faster transaction confirmations and lower orphan block rates to improve network efficiency and responsiveness. Unlike Bitcoin's fixed 10-minute block time, CKB dynamically adjusts block intervals based on network activity (approximately every four hours).
The mining algorithm of CKB is Eaglesong, a hash function specifically designed for Nervos, providing the same level of security as SHA-256. In terms of data structure, CKB uses a Cell model, an improvement over the Bitcoin UTXO model. The Cell model supports a dual-script system, allowing for on-chain data storage and verification of smart contracts and supporting asset issuance. Each Cell can store any type of data or asset and can also store and execute smart contracts. The design of the Cell model allows for separation of state and computation, enabling complex computations to be executed on Layer 2 or off-chain, ensuring security and consistency. Additionally, Cells support parallel execution and transaction bundling, improving computational efficiency and reducing costs.
Introduction to CKB and its working mechanism
CKB is the Layer 1 blockchain of Nervos Network, focused on 'consensus and execution' and 'data availability'. It employs a PoW consensus mechanism similar to Bitcoin but optimizes block packaging efficiency and confirmation speed through the NC-MAX algorithm. Additionally, CKB features its own Eaglesong hash function, providing efficient and secure mining support.
Cell model: Flexible UTXO upgrade
Structural composition: Each Cell contains Capacity, Data, Lock Script, and Type Script. Capacity represents stored value, Data can store various information, and Lock and Type Scripts provide verification mechanisms.
Parallel execution and state leasing: The Cell model supports parallel processing, allowing storage space to be rented by paying CKB, preventing on-chain data bloat and maintaining efficient management of on-chain data.
Programmability and compatibility
CKB-VM virtual machine: Supports the RISC-V instruction set, compatible with multiple languages, making it easier for developers to create complex smart contracts and expanding the application scenarios of CKB.
Scalability: Achieves transaction scalability through Layer 2 while Layer 1 focuses on data security. Compatible with BTC's UTXO model, users can use Bitcoin assets on CKB for smart contracts and DeFi operations.
Stablecoin payments and cross-chain support
Stablecoin storage and management: Utilizing the Cell model to store balances of stablecoins like RUSD, ensuring asset security and traceability.
Smart contract applications: CKB-VM supports operations like conditional payments, achieving flexible cross-chain payment solutions.
What is RGB++?
RGB++ is a decentralized asset issuance and smart contract protocol that supports Bitcoin's UTXO model as well as other UTXO public chains. It is based on the design philosophy of the RGB protocol and utilizes a binding method between off-chain and on-chain transactions to migrate data and complex contract functionalities that cannot be stored on BTC to CKB, making CKB the smart contract settlement layer for Bitcoin.
Basic functions of RGB++
BTC shadow chain role: RGB++ makes CKB a secondary chain to Bitcoin, used for handling complex smart contracts and logical operations that the BTC native system cannot achieve.
Inter-chain interaction: Transactions are completed on the Bitcoin network, but the execution of smart contracts is bound to CKB through RGB++. The legality of transactions can be synchronously confirmed on CKB via RGB++'s verification logic.
Asset issuance and management: RGB++ supports off-chain asset issuance (such as stablecoins, tokens, etc.) and uses CKB for lifecycle management, including advanced features like time locks and conditional payments.
Combination of security and programmability: RGB++ realizes the high security of Bitcoin and the programmability of CKB, providing more flexibility and scalability to the BTC network.
Cross-chain synchronization of assets and states
Isomorphic binding refers to maintaining asset and state synchronization between Bitcoin (BTC) and CKB through a binding mechanism. Whenever an asset transaction occurs on the BTC chain, RGB++ maps the corresponding contract state or asset changes on CKB.
Extended UTXO: Each UTXO on the BTC chain corresponds to a Cell on CKB, recording asset status and smart contract conditions.
Asset binding: The RGB++ assets held by users on the BTC chain have their status stored in CKB's Cells, ensuring consistency of information between the two chains.
Transaction synchronization: When RGB++ token transactions occur, a Commitment is generated on the BTC network, and the corresponding Cell on CKB is consumed, generating a new Cell to allocate assets.
Advantages of isomorphic binding - Empowering BTCFi
Smart contract support: Isomorphic binding allows CKB to serve as the execution layer for smart contracts, managing complex transaction conditions for BTC assets.
Asset management flexibility: Users can perform complex financial operations through CKB's programming capabilities without modifying the underlying protocol of BTC.
RGB++ Layer upgrade
Leap extends the binding relationship between CKB and BTC to all UTXO chains, enabling cross-chain asset transfers through 'rebinding'.
Bridge-less cross-chain: Leap allows RGB++ assets on the BTC chain to be seamlessly transferred to other UTXO chains by managing and transferring assets through switching bound UTXOs.
Bridge-less technology: Through isomorphic binding technology and switching UTXOs on different chains, Leap achieves cross-chain transfer without traditional Lock-Mint bridges.
Operational process:
Users publish Commitment on the BTC chain to release asset binding.
Publish a new Commitment on the Cardano chain to bind RGB++ assets.
Modify the locking script to switch the unlocking conditions from BTC UTXO to Cardano's eUTXO, allowing asset control on the Cardano chain.
The role of CKB in Leap
CKB acts as an indexer and data availability layer, with all RGB++ asset data stored on CKB, processing Leap requests and ensuring cross-chain asset security. Compared to traditional cross-chain bridges, CKB offers higher security and decentralization.
The role of RGB++ in stablecoin payments
The issuance and circulation of stablecoins: Issuing stablecoins on the BTC chain through RGB++ and utilizing CKB for smart management.
Cross-chain asset management: The combination of RGB++ Layer and CKB ensures seamless operation of stablecoin payments across different UTXO chains.
Smart contract support: Offers complex payment conditions and time-lock features, enhancing payment flexibility and security.
Bridge function: RGB++ Layer serves as a bridge between BTC and other UTXO chains and CKB, expanding BTC's programmability and asset management capabilities.
Introduction to Fiber Network
Fiber Network is a Layer 2 scaling solution similar to the BTC Lightning Network on CKB, designed to enhance off-chain payment capabilities, allowing for fast, low-cost payments, reducing the burden on the main chain, and improving transaction speed.
Off-chain payment characteristics: Achieves fast transfers through payment channels, enhancing transaction throughput.
As of September 2024, the BTC Lightning Network has over $300 million in funds, approximately 12,000 nodes, and nearly 50,000 payment channels. The Fiber Network of Nervos CKB has launched its testnet.
Off-chain payment channels: Allow users to directly exchange assets off-chain, with the final state submitted to CKB when the channel closes.
On-chain contract (HTLC): Ensures the security of off-chain transactions, automatically reverting assets if not confirmed in time.
PTLC: Improved HTLC, preventing privacy leaks.
Multi-hop routing: Supports payment path jumps through multiple nodes, reducing costs and increasing success rates.
Monitoring service (watchtower): Provides round-the-clock monitoring to prevent malicious nodes from double spending.
Differences between Fiber Network and BTC Lightning Network
Multi-asset support: Fiber Network supports various assets, including CKB, BTC, and RGB++ stablecoins, while the BTC Lightning Network only supports BTC.
Transaction fees and speed: Fiber Network runs on CKB, offering higher TPS and lower transaction fees, improving the user experience.
Cross-chain interoperability: Fiber Network supports the circulation of various assets and can achieve interconnection between the BTC Lightning Network and Fiber Network, ensuring the atomicity of cross-chain transactions.
The role of Fiber Network in stablecoin payments
Support for off-chain stablecoin transfers: Ensures instant and low-cost payments.
Reduce main chain pressure: Supports high-frequency trading through off-chain payment channels.
Cross-chain atomic payments: Securely perform stablecoin payments across multiple chains.
#JoyID Introduction
JoyID is a cryptocurrency wallet that combines Passkey key management, designed to provide cross-chain, decentralized identity authentication and management tools for the Nervos ecosystem. Users can securely store and use cryptocurrencies and other decentralized applications.
Main functions
No passwords and mnemonic phrases: Users can access the wallet through biometric methods, enabling keyless login.
Support for BTC and Fiber Network: Provides faster and more efficient transactions while expanding the application scenarios of CKB.
Multi-chain support: Compatible not only with BTC and Nervos CKB, but also with ETH and multiple EVM chains.
Additional security: By associating Passkey with hardware devices for secp256r1 signatures, generating the required secp256k1 signatures ensures transaction security, while biometric information is not exposed during transactions.
The combination of security and usability:
Security: Hardware wallet > Passkey wallet > Software non-custodial wallet > Custodial wallet
Usability: Passkey wallet > Custodial wallet > Software non-custodial wallet > Hardware wallet
The role of JoyID in stablecoin payments
As a user interface, JoyID allows users to make stablecoin payments within the CKB network, managing RUSD assets and payment channels. Its combination of security, usability, and multi-chain support provides further empowerment for CKB-based stablecoin payments and other transactions.
